12E.11 AUTHORITY -- BONDS.
1. The authority may issue bonds and, if bonds are issued, shall
make the proceeds from the bonds available to the state pursuant to
the sales agreement to fund capital projects, certain debt service on
outstanding obligations that funded capital projects, and attorney
fees related to the master settlement agreement, and to provide a
secure and stable source of funding to the state, consistent with the
purposes of section 12E.3A and other provisions of this chapter. In
connection with the issuance of bonds and subject to the terms of the
sales agreement, the authority shall determine the terms and other
details of the financing and the method of implementation of the
program plan. Bonds issued pursuant to this section may be secured
by a pledge of all or a portion of the state's share and any moneys
derived from the state's share, and any other sources available to
the authority with the exception of moneys in the tobacco settlement
trust fund. The authority may also issue refunding bonds, including
advance refunding bonds, for the purpose of refunding previously
issued bonds, and may issue other types of bonds, debt obligations,
and financing arrangements necessary to fulfill its purposes or the
purposes of this chapter.
2. The authority may issue its bonds in principal amounts which,
in the opinion of the authority, are necessary to provide sufficient
funds for achievement of its purposes, the payment of interest on its
bonds, the establishment of reserves to secure the bonds, the costs
of issuance of its bonds, and all other expenditures of the authority
incident to and necessary to carry out its purposes or powers. The
bonds are investment securities and negotiable instruments within the
meaning of and for the purposes of the uniform commercial code,
chapter 554.
3. Bonds issued by the authority are payable solely and only out
of the moneys, assets, or revenues pledged by the authority and are
not a general obligation or indebtedness of the authority or an
obligation or indebtedness of the state or any subdivision of the
state. The authority shall not pledge the credit or taxing power of
the state or any political subdivision of the state, or create a debt
or obligation of the state, or make its debts payable out of any
moneys except those of the authority, excluding those moneys
deposited in the tobacco settlement trust fund.
4. Bonds shall state on their face that they are payable both as
to principal and interest solely out of the assets of the authority
pledged for their purpose and do not constitute an indebtedness of
the state or any political subdivision of the state; are secured
solely by and payable solely from assets of the authority pledged for
such purpose; constitute neither a general, legal, or moral
obligation of the state or any of its political subdivisions; and
that the state has no obligation or intention to satisfy any
deficiency or default of any payment of the bonds.
5. Any amount pledged by the authority to be received under the
master settlement agreement shall be valid and binding at the time
the pledge is made. Amounts so pledged and then or thereafter
received by the authority shall immediately be subject to the lien of
such pledge without any physical delivery thereof or further act.
The lien of any such pledge shall be valid and binding as against all
parties having claims of any kind against the authority, whether such
parties have notice of the lien. Notwithstanding any other provision
to the contrary, the resolution of the authority or any other
instrument by which a pledge is created need not be recorded or filed
to perfect such pledge.
6. The proceeds of bonds issued by the authority and not required
for deposit in the tobacco settlement trust fund may be invested in
any manner approved by the board and specified in the trust indenture
or resolution pursuant to which the bonds must be issued,
notwithstanding any other provision to the contrary.
7. The bonds shall comply with all of the following:
a. The bonds shall be in a form, issued in denominations,
executed in a manner, and payable over terms and with rights of
redemption, as the board prescribes in the resolution authorizing
their issuance.
b. The bonds shall be fully negotiable instruments under the
laws of this state and may be sold at prices, at public or private
sale, and in a manner as prescribed by the board. Chapters 73A, 74,
74A, and 75 shall not apply to the sale or issuance of bonds under
this chapter.
c. The bonds shall be subject to the terms, conditions, and
covenants providing for the payment of the principal, redemption
premiums, if any, interest which may be fixed or variable during any
period the bonds are outstanding, and other terms, conditions,
covenants, and protective provisions safeguarding payment, not
inconsistent with this chapter and as determined by resolution of the
board authorizing their issuance.
8. The bonds issued under this chapter are securities in which
insurance companies and associations and other persons engaged in the
business of insurance; banks, trust companies, savings associations,
savings and loan associations, and investment companies;
administrators, guardians, executors, trustees, and other
fiduciaries; and other persons authorized to invest in bonds or other
obligations of the state may properly and legally invest funds,
including capital, in their control or belonging to them.
9. Bonds must be authorized by a resolution of the board.
However, a resolution authorizing the issuance of bonds may delegate
to an officer of the authority the power to negotiate and fix the
details of an issue of bonds by an appropriate certificate of the
authorized officer.
10. To comply with federal law with respect to the issuance of
bonds, the interest of which is tax-exempt pursuant to the Internal
Revenue Code, the authority may issue a certain series of bonds, or
periodically issue several series of bonds, so that interest on the
bonds remains exempt from federal taxation or to comply with the
purposes specified in this chapter.
11. The state reserves the right at any time to alter, amend,
repeal, or otherwise change the structure, organization, programs, or
activities of the authority, including the power to terminate the
authority, except that a law shall not be enacted that impairs any
obligation made pursuant to a sales agreement or any contract entered
into by the authority with or on behalf of the holders of the bonds
to the extent that any such law would contravene Article I, section
21, of the Constitution of the State of Iowa or Article I, section
10, of the Constitution of the United States.
12E.11 AUTHORITY -- BONDS.
1. The authority may issue bonds and, if bonds are issued, shall
make the proceeds from the bonds available to the state pursuant to
the sales agreement to fund capital projects, certain debt service on
outstanding obligations that funded capital projects, and attorney
fees related to the master settlement agreement, and to provide a
secure and stable source of funding to the state, consistent with the
purposes of section 12E.3A and other provisions of this chapter. In
connection with the issuance of bonds and subject to the terms of the
sales agreement, the authority shall determine the terms and other
details of the financing and the method of implementation of the
program plan. Bonds issued pursuant to this section may be secured
by a pledge of all or a portion of the state's share and any moneys
derived from the state's share, and any other sources available to
the authority with the exception of moneys in the tobacco settlement
trust fund. The authority may also issue refunding bonds, including
advance refunding bonds, for the purpose of refunding previously
issued bonds, and may issue other types of bonds, debt obligations,
and financing arrangements necessary to fulfill its purposes or the
purposes of this chapter.
2. The authority may issue its bonds in principal amounts which,
in the opinion of the authority, are necessary to provide sufficient
funds for achievement of its purposes, the payment of interest on its
bonds, the establishment of reserves to secure the bonds, the costs
of issuance of its bonds, and all other expenditures of the authority
incident to and necessary to carry out its purposes or powers. The
bonds are investment securities and negotiable instruments within the
meaning of and for the purposes of the uniform commercial code,
chapter 554.
3. Bonds issued by the authority are payable solely and only out
of the moneys, assets, or revenues pledged by the authority and are
not a general obligation or indebtedness of the authority or an
obligation or indebtedness of the state or any subdivision of the
state. The authority shall not pledge the credit or taxing power of
the state or any political subdivision of the state, or create a debt
or obligation of the state, or make its debts payable out of any
moneys except those of the authority, excluding those moneys
deposited in the tobacco settlement trust fund.
4. Bonds shall state on their face that they are payable both as
to principal and interest solely out of the assets of the authority
pledged for their purpose and do not constitute an indebtedness of
the state or any political subdivision of the state; are secured
solely by and payable solely from assets of the authority pledged for
such purpose; constitute neither a general, legal, or moral
obligation of the state or any of its political subdivisions; and
that the state has no obligation or intention to satisfy any
deficiency or default of any payment of the bonds.
5. Any amount pledged by the authority to be received under the
master settlement agreement shall be valid and binding at the time
the pledge is made. Amounts so pledged and then or thereafter
received by the authority shall immediately be subject to the lien of
such pledge without any physical delivery thereof or further act.
The lien of any such pledge shall be valid and binding as against all
parties having claims of any kind against the authority, whether such
parties have notice of the lien. Notwithstanding any other provision
to the contrary, the resolution of the authority or any other
instrument by which a pledge is created need not be recorded or filed
to perfect such pledge.
6. The proceeds of bonds issued by the authority and not required
for deposit in the tobacco settlement trust fund may be invested in
any manner approved by the board and specified in the trust indenture
or resolution pursuant to which the bonds must be issued,
notwithstanding any other provision to the contrary.
7. The bonds shall comply with all of the following:
a. The bonds shall be in a form, issued in denominations,
executed in a manner, and payable over terms and with rights of
redemption, as the board prescribes in the resolution authorizing
their issuance.
b. The bonds shall be fully negotiable instruments under the
laws of this state and may be sold at prices, at public or private
sale, and in a manner as prescribed by the board. Chapters 73A, 74,
74A, and 75 shall not apply to the sale or issuance of bonds under
this chapter.
c. The bonds shall be subject to the terms, conditions, and
covenants providing for the payment of the principal, redemption
premiums, if any, interest which may be fixed or variable during any
period the bonds are outstanding, and other terms, conditions,
covenants, and protective provisions safeguarding payment, not
inconsistent with this chapter and as determined by resolution of the
board authorizing their issuance.
8. The bonds issued under this chapter are securities in which
insurance companies and associations and other persons engaged in the
business of insurance; banks, trust companies, savings associations,
savings and loan associations, and investment companies;
administrators, guardians, executors, trustees, and other
fiduciaries; and other persons authorized to invest in bonds or other
obligations of the state may properly and legally invest funds,
including capital, in their control or belonging to them.
9. Bonds must be authorized by a resolution of the board.
However, a resolution authorizing the issuance of bonds may delegate
to an officer of the authority the power to negotiate and fix the
details of an issue of bonds by an appropriate certificate of the
authorized officer.
10. To comply with federal law with respect to the issuance of
bonds, the interest of which is tax-exempt pursuant to the Internal
Revenue Code, the authority may issue a certain series of bonds, or
periodically issue several series of bonds, so that interest on the
bonds remains exempt from federal taxation or to comply with the
purposes specified in this chapter.
11. The state reserves the right at any time to alter, amend,
repeal, or otherwise change the structure, organization, programs, or
activities of the authority, including the power to terminate the
authority, except that a law shall not be enacted that impairs any
obligation made pursuant to a sales agreement or any contract entered
into by the authority with or on behalf of the holders of the bonds
to the extent that any such law would contravene Article I, section
21, of the Constitution of the State of Iowa or Article I, section
10, of the Constitution of the United States.
12E.11 AUTHORITY -- BONDS.
1. The authority may issue bonds and, if bonds are issued, shall
make the proceeds from the bonds available to the state pursuant to
the sales agreement to fund capital projects, certain debt service on
outstanding obligations that funded capital projects, and attorney
fees related to the master settlement agreement, and to provide a
secure and stable source of funding to the state, consistent with the
purposes of section 12E.3A and other provisions of this chapter. In
connection with the issuance of bonds and subject to the terms of the
sales agreement, the authority shall determine the terms and other
details of the financing and the method of implementation of the
program plan. Bonds issued pursuant to this section may be secured
by a pledge of all or a portion of the state's share and any moneys
derived from the state's share, and any other sources available to
the authority with the exception of moneys in the tobacco settlement
trust fund. The authority may also issue refunding bonds, including
advance refunding bonds, for the purpose of refunding previously
issued bonds, and may issue other types of bonds, debt obligations,
and financing arrangements necessary to fulfill its purposes or the
purposes of this chapter.
2. The authority may issue its bonds in principal amounts which,
in the opinion of the authority, are necessary to provide sufficient
funds for achievement of its purposes, the payment of interest on its
bonds, the establishment of reserves to secure the bonds, the costs
of issuance of its bonds, and all other expenditures of the authority
incident to and necessary to carry out its purposes or powers. The
bonds are investment securities and negotiable instruments within the
meaning of and for the purposes of the uniform commercial code,
chapter 554.
3. Bonds issued by the authority are payable solely and only out
of the moneys, assets, or revenues pledged by the authority and are
not a general obligation or indebtedness of the authority or an
obligation or indebtedness of the state or any subdivision of the
state. The authority shall not pledge the credit or taxing power of
the state or any political subdivision of the state, or create a debt
or obligation of the state, or make its debts payable out of any
moneys except those of the authority, excluding those moneys
deposited in the tobacco settlement trust fund.
4. Bonds shall state on their face that they are payable both as
to principal and interest solely out of the assets of the authority
pledged for their purpose and do not constitute an indebtedness of
the state or any political subdivision of the state; are secured
solely by and payable solely from assets of the authority pledged for
such purpose; constitute neither a general, legal, or moral
obligation of the state or any of its political subdivisions; and
that the state has no obligation or intention to satisfy any
deficiency or default of any payment of the bonds.
5. Any amount pledged by the authority to be received under the
master settlement agreement shall be valid and binding at the time
the pledge is made. Amounts so pledged and then or thereafter
received by the authority shall immediately be subject to the lien of
such pledge without any physical delivery thereof or further act.
The lien of any such pledge shall be valid and binding as against all
parties having claims of any kind against the authority, whether such
parties have notice of the lien. Notwithstanding any other provision
to the contrary, the resolution of the authority or any other
instrument by which a pledge is created need not be recorded or filed
to perfect such pledge.
6. The proceeds of bonds issued by the authority and not required
for deposit in the tobacco settlement trust fund may be invested in
any manner approved by the board and specified in the trust indenture
or resolution pursuant to which the bonds must be issued,
notwithstanding any other provision to the contrary.
7. The bonds shall comply with all of the following:
a. The bonds shall be in a form, issued in denominations,
executed in a manner, and payable over terms and with rights of
redemption, as the board prescribes in the resolution authorizing
their issuance.
b. The bonds shall be fully negotiable instruments under the
laws of this state and may be sold at prices, at public or private
sale, and in a manner as prescribed by the board. Chapters 73A, 74,
74A, and 75 shall not apply to the sale or issuance of bonds under
this chapter.
c. The bonds shall be subject to the terms, conditions, and
covenants providing for the payment of the principal, redemption
premiums, if any, interest which may be fixed or variable during any
period the bonds are outstanding, and other terms, conditions,
covenants, and protective provisions safeguarding payment, not
inconsistent with this chapter and as determined by resolution of the
board authorizing their issuance.
8. The bonds issued under this chapter are securities in which
insurance companies and associations and other persons engaged in the
business of insurance; banks, trust companies, savings associations,
savings and loan associations, and investment companies;
administrators, guardians, executors, trustees, and other
fiduciaries; and other persons authorized to invest in bonds or other
obligations of the state may properly and legally invest funds,
including capital, in their control or belonging to them.
9. Bonds must be authorized by a resolution of the board.
However, a resolution authorizing the issuance of bonds may delegate
to an officer of the authority the power to negotiate and fix the
details of an issue of bonds by an appropriate certificate of the
authorized officer.
10. To comply with federal law with respect to the issuance of
bonds, the interest of which is tax-exempt pursuant to the Internal
Revenue Code, the authority may issue a certain series of bonds, or
periodically issue several series of bonds, so that interest on the
bonds remains exempt from federal taxation or to comply with the
purposes specified in this chapter.
11. The state reserves the right at any time to alter, amend,
repeal, or otherwise change the structure, organization, programs, or
activities of the authority, including the power to terminate the
authority, except that a law shall not be enacted that impairs any
obligation made pursuant to a sales agreement or any contract entered
into by the authority with or on behalf of the holders of the bonds
to the extent that any such law would contravene Article I, section
21, of the Constitution of the State of Iowa or Article I, section
10, of the Constitution of the United States.
